By Toni Weeks
San Diego, April 17 - Morgan Stanley priced $804,600 of trigger phoenix autocallable optimization securities due April 20, 2017 linked to Starbucks Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Starbucks stock closes at or above the 70% trigger level on a monthly observation date, the issuer will pay a contingent coupon at an annualized rate of 10.81% for that month.
If the shares close at or above the initial price on a monthly observation date beginning April 15, 2013, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Starbucks shares finish at or above the trigger price, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
Morgan Stanley & Co. LLC is the agent, and UBS Financial Services Inc. is the dealer.
| Issuer: | Morgan Stanley
|
| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying stock: | Starbucks Co. (Nasdaq: SBUX)
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| Amount: | $804,600
|
| Maturity: | April 20, 2017
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| Coupon: | 10.81% per year, payable monthly, if stock closes at or above trigger price on observation date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus contingent coupon if Starbucks shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Beginning April 5, 2013, automatically at par plus contingent coupon if Starbucks shares close at or above initial price on a monthly observation date
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| Initial share price: | $61.67
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| Trigger price: | $43.17, 70% of initial share price
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| Pricing date: | April 13
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| Settlement date: | April 20
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| Agent: | Morgan Stanley & Co. LLC
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| Dealer: | UBS Financial Services Inc.
|
| Fees: | 2.5%
|
| Cusip: | 61760T769
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